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MCQs - 2026-04

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4811.
What is a primary benefit of substantial foreign exchange reserves?
A Increased currency depreciation
B Reduced capacity to manage import bills
C A strong buffer against external shocks
D Decreased investor confidence
4812.
Which of the following is NOT mentioned as a factor contributing to the surge in foreign exchange reserves?
A Growth in remittances
B Sustained FDI and FPI inflows
C Unfavorable balance of payments
D RBI's management of the forex market
4813.
The accumulation of foreign exchange reserves is a testament to:
A Weak external sector performance
B Declining capital inflows
C Strong external sector performance and robust capital inflows
D Increased import bills
4814.
What is the approximate all-time high level reached by India's foreign exchange reserves in early April 2026?
A $600 billion
B $625 billion
C $650 billion
D $675 billion
4815.
Which of the following is NOT mentioned as a reason for the strong performance of the services sector?
A Robust domestic demand
B Strong international client demand
C Government subsidies for all services
D Increased business activity
4816.
The services sector is described as a major engine of:
A Inflationary pressure
B Economic growth and employment
C Government debt
D Import dependency
4817.
Service providers are optimistic about future growth due to:
A Anticipated decrease in client numbers
B Expected increase in client numbers and market expansion
C Reduced investment in technology
D Stagnation in the market
4818.
The business expectations index for the services sector remained:
A Weak
B Neutral
C Strong
D Volatile
4819.
How were the increased input costs largely managed by service providers?
A By reducing staff
B By absorbing the costs
C By passing them on to clients through higher prices
D By reducing service quality
4820.
What were the main components of input costs that saw a moderate increase?
A Raw materials and energy
B Technology and skilled labor
C Rent and utilities
D Transportation and logistics